Who is the most powerful person you know personally? What is it that makes the person so powerful? Be sure to answer this question in the context of the information presented in the chapter.

Do you think that taking the (Harvard) MBA Oath positively affects the ability of employees to discharge their ethical duties? Is it useful? If so, in what ways? What would you add to the Oath? Is there anything that concerns you, and why?

5. C purchase XYZ Company stock several years ago for $50,000. Unfortunately, the stock had declined in value. Therefore, C decided to sell the stock on December 15, 2020 for $35,000, incurring a loss of ($15,000). C had other gains of $40,000 in 2020 and felt he would like to offset those gains with the loss on XYZ Company stock. However, after reading some very favorable news about XYZ Company in early January, 2021, C decided to buy back XYZ Company stock. So on January 8, 2021 C bought back the stock for $36,000.

a. How much of the loss may C deduct on his 2020 return?

b. What is C’s basis in the XYZ Company stock that was purchased on January 8, 2021?

C purchase XYZ Company stock several years ago for $50,000. Unfortunately, the stock had declined in value. Therefore, C decided to sell the stock on December 15, 2020 for $35,000, incurring a loss of ($15,000). C had other gains of $40,000 in 2020 and felt he would like to offset those gains with the loss on XYZ Company stock. However, after reading some very favorable news about XYZ Company in early January, 2021, C decided to buy back XYZ Company stock. So on January 8, 2021 C bought back the stock for $36,000.

How much of the loss may C deduct on his 2020 return?

What is C’s basis in the XYZ Company stock that was purchased on January 8, 2021?

Was the behavior of companies (including that of their former CEOs and Directors) ethical in the creation of robot police hardware and software?

analyze this question using Bagley’s Ethical Leader’s Decision Tree by Constance E. Bagley ( 2003).

The finance manager wants to prepare a cash budget for the July, 2020 through December, 2020 period.
The finance manager has received the following information from the marketing and operations
managers:
• The Sales were $140,000 in January, 2020 and then the sales grew by 2% each month in the first
three months (i.e., from February to April 2020) and by 5% in the next two months (i.e., in May
and June 2020). The sales are expected to grow by 1% each month thereafter.
• 45% of the Sales are collected in the same month. 30% of the sales are collected in the following
month. 24% of the sales are collected after two months and the remainder are not collected.
• The Purchases are 80% of each month’s sales and paid in the same month.
• Wages and Salaries are $25,000 each month and paid in the same month.
• Other administrative expenses are $15,000 and paid in the same month.
• Depreciation expense is $5,000 each month.
• An electrical device worth $30,000 will be purchased in October 2020. 50% of the amount due
will be paid immediately and the balance will be paid in November, 2020.
• The company had previously taken a loan of $200,000. The annual interest rate on the loan
amount is 4%. The interest is paid once a year in December each year. Assume that no principal
repayments are made in this period, only interest payments are made.
• The company pays rent of $3,500 quarterly (in March, June, September, and December each
year).

1. Determine the total cash inflows for each month from July 2020 to December 2020.
Show your work in Excel.

2. Determine the total cash outflows for each month from July 2020 to December 2020.
Show your work in Excel.

3. Determine the expected change in cash for each month from July 2020 to December 2020.
Show your work in Excel.

4. Describe in your own words some of the short-term borrowing options that the company may adopt.

The Article"Amazon Profit Falls as Pandemic-Related Costs Rise"

NEW YORK — Amazon’s sales soared in the first three months of the year, as more homebound people shopped online amid the coronavirus pandemic.

But getting millions of packages to shopper’s doorsteps is expensive. The rising costs pushed Amazon’s first-quarter profit down 29% and its earnings missed Wall Street expectations. Amazon shares slipped about 5% in after-hours trading April 30.

And CEO and founder Jeff Bezos says Amazon will spend more.

Bezos said he expects the company to spend $4 billion “and perhaps a bit more” in the second quarter. That money will go to pay workers overtime, to buy masks or other safety protection for them and to disinfect Amazon’s vast warehouses where orders are packed and shipped.

Still, the company is in better financial position than most traditional retailers. Macy’s, Kohl’s and Gap temporarily closed their stores, losing much of their sales. They also have stopped paying their workers.

Amazon, whose reputation is built on speedy deliveries, has struggled to keep up with the surge in orders. Deliveries that took two days or less can now take a week or longer. And it is sold out of many of the products people need, like toilet paper and disinfectant sprays.

The problem, Amazon said, is that it can’t get products into its warehouses and out again fast enough. The company doesn’t know when delivery times will return to normal.

“Right now, things are still so up in the air that I can’t really project when that day will be,” said Brian Olsavsky, Amazon’s chief financial officer.

It has hired 175,000 people to try to keep up with the rush of orders and is paying workers an extra $2 an hour. But many have stayed home, worried they may contract the virus at the warehouse where thousands of people work. Some have protested what they said were unsafe conditions.

In France, a court closed all six Amazon warehouses, saying that the company didn’t do enough to protect workers. Amazon has said it provides workers with face masks, has been checking temperatures and keeps workers apart.

Overall, the Seattle-based company reported net income of $2.54 billion in the first quarter, compared with $3.56 billion a year ago. Earnings per share came to $5.01, below the $6.23 analysts expected, according to FactSet.

Revenue rose 26% to $75.45 billion, beating the $73.7 billion analysts expected.

Outside of online shopping, Amazon’s other businesses also grew. Revenue at its cloud computing business, which helps powers video streaming site Netflix and other companies, rose 33%.

At Whole Foods, revenue rose 8%. Amazon said much of the sales increase happened in March, when shoppers headed to Whole Foods to stock up on groceries due to the pandemic.

Its total workforce topped 840,000 at the end of March, adding more than 42,000 employees since the end of last year. Amazon.com Inc. is the second-largest U.S.-based employer behind Walmart.

Summarize and describe importance of story. What are the implications for this story on the future? The story should be three robust paragraphs

Bust-A-Knee Inc. (Bust-A-Knee) is a medical device company that specializes in developing knee replacement hardware. In 2020, Bust-A-Knee acquired 100 percent equity ownership of MD International (MD) for a purchase price of $15 million. MD is a pharmaceutical company that is developing two drugs: (1) a drug to cure cancer, Drug X, and (2) a pain medication, OuchX. Bust-A-Knee acquired the entity to expand into a new sector within the medical field.

Bust-A-Knee concluded the acquisition of MD was a business combination. In purchase accounting, Bust-A-Knee recognized intangible assets for the in-process research and development (IPR&D) related to the ongoing development of Drug X and OuchX, among other acquired intangible assets. The IPR&D of Drug X and OuchX had acquisition-date fair values of $4 million and $3 million, respectively.

During 2021, Bust-A-Knee determined its operations could not support the continued development of Drug X because significant efforts were being put forth in the development of OuchX. Since the date of acquisition, Bust-A-Knee had not invested any additional funding in the development of Drug X. Bust-A-Knee determined that there was no change in the carrying amount recorded on the date of acquisition.

Rather than abandon the development project, Bust-A-Knee entered into an agreement with Pharmers Company (Pharmers) to transfer its ownership interests in (and control of) the IPR&D for Drug X. Pharmers, the market’s largest pharmaceutical company, will use Drug X’s IPR&D to continue its development, and obtain FDA approval to sell the drug on the open market. Selling IPR&D is not part of Bust-A-Knee’s ordinary activities and therefore Pharmers is not a customer of Bust-A-Knee (as defined by ASC 606).

In return, Pharmers will pay Bust-A-Knee (1) a nonrefundable fixed fee of $2 million at contract execution; (2) a contingent future payment of $500,000, when Drug X is FDA approved; and (3) a 10 percent royalty fee based on the annual sales earned by Pharmers for the sale of Drug X in each of the subsequent five years following FDA approval.

On the date of transfer, Bust-A-Knee estimates that the total consideration (nonrefundable fixed fee and contingent future fees) will be between $5 million and $6.5 million and that the weighted average expected amount of consideration Bust-A-Knee expects to be entitled to (at an 80 percent probability) is $5.5 million. Under the agreement, Pharmers paid $2 million when it obtained control of the IPR&D of Drug X and will pay the additional amounts if and when the associated contingencies related to such amounts are resolved.

Required:

• On the date of transfer to Pharmers, how should Bust-A-Knee record the transaction?

Bust-A-Knee Inc. (Bust-A-Knee) is a medical device company that specializes in developing knee replacement hardware. In 2020, Bust-A-Knee acquired 100 percent equity ownership of MD International (MD) for a purchase price of $15 million. MD is a pharmaceutical company that is developing two drugs: (1) a drug to cure cancer, Drug X, and (2) a pain medication, OuchX. Bust-A-Knee acquired the entity to expand into a new sector within the medical field. Bust-A-Knee concluded the acquisition of MD was a business combination. In purchase accounting, Bust-A-Knee recognized intangible assets for the in-process research and development (IPR&D) related to the ongoing development of Drug X and OuchX, among other acquired intangible assets. The IPR&D of Drug X and OuchX had acquisition-date fair values of $4 million and $3 million, respectively. During 2021, Bust-A-Knee determined its operations could not support the continued development of Drug X because significant efforts were being put forth in the development of OuchX. Since the date of acquisition, Bust-A-Knee had not invested any additional funding in the development of Drug X. Bust-A-Knee determined that there was no change in the carrying amount recorded on the date of acquisition. Rather than abandon the development project, Bust-A-Knee entered into an agreement with Pharmers Company (Pharmers) to transfer its ownership interests in (and control of) the IPR&D for Drug X. Pharmers, the market’s largest pharmaceutical company, will use Drug X’s IPR&D to continue its development, and obtain FDA approval to sell the drug on the open market. Selling IPR&D is not part of Bust-A-Knee’s ordinary activities and therefore Pharmers is not a customer of Bust-A-Knee (as defined by ASC 606). In return, Pharmers will pay Bust-A-Knee (1) a nonrefundable fixed fee of $2 million at contract execution; (2) a contingent future payment of $500,000, when Drug X is FDA approved; and (3) a 10 percent royalty fee based on the annual sales earned by Pharmers for the sale of Drug X in each of the subsequent five years following FDA approval. On the date of transfer, Bust-A-Knee estimates that the total consideration (nonrefundable fixed fee and contingent future fees) will be between $5 million and $6.5 million and that the weighted average expected amount of consideration Bust-A-Knee expects to be entitled to (at an 80 percent probability) is $5.5 million. Under the agreement, Pharmers paid $2 million when it obtained control of the IPR&D of Drug X and will pay the additional amounts if and when the associated contingencies related to such amounts are resolved.

Required: • On the date of transfer to Pharmers, how should Bust-A-Knee record the transaction?

Answers provided. Please explain the calculations

This is the entire question that was given. It is not missing information.

Weisman Company, a 100% owned subsidiary of Martindale Corporation, sells inventory to Martindale at a 20% profit on selling price. The following data are available pertaining to inter-company purchases by Martindale:

Weisman’s profit numbers were $125,000, $142,000 and $265,000 for 2020, 2021, and 2022, respectively. Martindale received dividends from Weisman of $25,000 for 2020 and 2021, and $30,000 for 2022.

29.      What would be the net debit or credit to cost of goods sold on the 2021 consolidation worksheet? Answer = $19,000 credit

30.       Assume Weisman uses the equity method to account for its investment in Martindale. What would be the debit to retained earnings regarding the 2020 consolidation entry related to the unrealized inventory profit? Answer = $-0-